April 30, 2008

Is It A Recession If The Economy Is Growing?

The bruised economy limped through the first quarter, growing at just a 0.6 percent pace as housing and credit problems forced people and businesses alike to hunker down.

The country's economic growth during January through March was the same as in the final three months of last year, the Commerce Department reported Wednesday. The statistic did not meet what economists consider the classic definition of a recession, which is a retraction of the economy. This means that although the economy is stuck in a rut, it is still managing to grow, even if modestly.

Many analysts were predicting that the gross domestic product (GDP) would weaken a bit more—to a pace of just 0.5 percent—in the first quarter. Earlier this year, some economists thought the economy would actually lurch into reverse during the opening quarter. Now, they say they believe that will likely happen during the current April-to-June period.

"The economy is weak but not collapsing," said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group. "A recession can't be ruled out, although the stars are not lined up at this point to definitively say one way or the other."

Which makes us wonder – liberals have been telling us for months that we are in the throes of a recession. Economists, however, find that not to be the case and question if we are actually entering one. Could the recessionary claims all be partisan smoke designed to obscure the weakness of the Democrats running for the presidency and Congress? Are the Democrats willing to trash America’s economy – like they trash our military and the war effort – in order to improve their chances of electoral victory?

MuNuviana

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NAME: Greg
AGE: 50-ish
SEX: Male
MARITAL STATUS: Married
OCCUPATION: Social Studies Teacher
LOCATION: Seabrook, TX
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